Floating Rate Notes (FRNs)

The U.S. Treasury began issuing Floating Rate Notes (FRNs) in January 2014. Issued for a term of two years, FRNs pay varying amounts of interest quarterly until maturity. Interest payments rise and fall based on discount rates in auctions of 13-week Treasury bills.

We offer FRNs in TreasuryDirect and through banks and brokers. Once you purchase an FRN, you can hold it until it matures or sell it before it matures.